Outsourcing at its core is really any part of your business that you don’t do in-house with your own employees or managers, and nearly every business in retail, wholesale or another sales-related fields will outsource product manufacturing to a supplier. Other times it might be mundane tasks such as housekeeping and property maintenance that get outsourced since it makes more sense to do so.
But it’s easy to forget other tasks that could be outsourced and save so much time for you and your employees to focus on other things such as winning new customers or meeting deadlines with important clients. Now outsourcing isn’t always the answer because sometimes even with money saved, you could still run into other headaches. But you can consider a few things that may affect your decision on whether to outsource.
Considerations for Outsourcing Business Tasks
The first consideration is usually cost since most business services outsourced will save money, but that’s not always the case. Also, sometimes outsourcing services means the company your outsourcing to may want you to enter into a contract for a certain cost over a certain time period, and this may not be something you want to do. The second consideration is whether outsourcing could affect your customer relationship standing.
If you’ve provided a product or service to customers in-house that they’ve been happy with for years, giving that task away to a third party may not be the best move for your business. And then you also need to consider whether you could be putting your data or your customers’ data at too high a risk by outsourcing certain tasks. But there are some general areas that are frequently outsourced by businesses.
Administrative Assistant Outsourcing
In today’s business world, you really don’t have to hire full-time secretarial staff because virtual administrative assistants are in great supply. After all, since they can easily get your paperwork done and manage your schedules from the comfort of their own home even if it’s hundreds of miles away, why buy the new desk, workstation computer and office equipment for them since they’ll already have it at home or their own workspace?
And since you can usually pay virtual administrative assistants more like independent contractors than full-time employees, you won’t have to worry about the costs of all those benefits.
Accounting And Payroll Outsourcing
Accounting, bookkeeping and payroll management are all things you should outsource, especially if you’re a small business owner. Many small business owners make the mistake of assuming. They either need to hire a bookkeeper or in-house accountant or do all the finances and payroll management themselves. But there’s a much better way by outsourcing those kinds of tasks to companies like Employment Innovations because doing so can not only take the stress out of remembering to get the payroll filed; you’ll be letting professionals handle all the legal compliance issues that come with it.
Sometimes outsourced payroll services are offered as part of a whole HR package, which then means things like recruiting and employee benefits are also handled outside at a much smaller cost to you. But really there’s no reason you should spend extra time or money learning bookkeeping and buying accounting software when you can outsource it.
IT Service Outsourcing
The matter of outsourcing your IT services can be a little trickier than other things because every business’s technology infrastructure is different, and some may or may not need in-house technicians. Certainly, since cloud technology can host your website, backup data, provide email and allow for scalability, outsourcing IT services could save your company a lot of money.
But some caveats you do have to be aware of are that you have no control over things that are outsourced in a third-party cloud, so if your website or file storage location goes down, you could risk losing profits by being unable to get tasks done as a result. You’re also handing over data security to a third party, so you’ll need to be extra careful with that.
In conclusion, outsourcing can greatly benefit your company if you do your homework on the companies you’re outsourcing to. Just remember, saving money and time isn’t the only factor to consider; you need to make sure you’re paying for reliability and trustworthiness as well.
But it pays from time to time to review what you’re doing with your business with all people involved and consider whether delegating certain divisions to another party would be in the business’s best interest.
You may also like: Why It’s Better to Outsource Market Research